European Union (EU) and Russia have settled bilateral issues on Russia's accession to the World Trade Organization (WTO), European Commission said on Tuesday.

The 26th EU-Russia summit gathered European Council President Herman Van Rompuy, European Commission President Jose Manuel Barroso and Russian President Dmitry Medvedev Tuesday in Brussels with the aim to enhance their bilateral relationship.

On this occasion, the two sides signed a Memorandum of Understanding (MOU) on the settling of bilateral issues regarding Russia's accession to the WTO.

"We believe it is a milestone because Russia becoming a WTO member in 2011 is now a very realistic perspective," Barroso said.

The two sides agreed to shift the focus on multilateral negotiations so that Russia can join the WTO as soon as possible.

Besides WTO talks, Russian and EU leaders made progress and developed a concrete plan on how to establish their Partnership for Modernization.

While reminding that this partnership is not only about technology but also about the rule of law, EU leaders welcomed Medvedev's efforts to push for political, judicial and economic reforms in Russia.

"I want to thank the EU authorities for giving close attention to the matter," the Russian president said. "Modernization is the top priority for developing our country."

As the two sides now have a common view on the roadmap towards a visa-free travel regime, they announced they will start elaborating a list of common steps whose implementation will open the way for talks on the EU-Russia visa waiver agreement.

Russian and EU leaders also had the opportunity to discuss sensitive issues, in particular the question of human rights and conflicts in their common neighborhood.

"We still face unresolved, protracted conflicts which are a threat to the stability and security to both the European Union and Russia. The EU is actively engaged in efforts to ensure long- lasting and peaceful solutions to these conflicts,"Van Rompuy said.

The EU made proposals for resuming formal negotiations on the Transnistrian settlement process and re-emphasized the principles of peaceful settlement proposed by the Minsk Group as the best approach to reach an agreement on NagornoKarabakh, Azerbaijan.

The EU also called for restoring a meaningful OSCE presence in Georgia and for renewed efforts to deal with both the security situation as well as humanitarian and human rights issues.

"Close cooperation with Russia on the above is the key to success. Progress in this field will create momentum for EU-Russia cooperation in general," Van Rompuy said.

"Our mutual interdependence is a reality," Barroso concluded, highlighting the political imperative for both sides to work together as closely as possible and on as many issues as possible.